Home Buyers Regaining the Upper Hand

I don’t know about in your area but in my area home buyers are really starting to get the upperhand. We live in a large new construction neighborhood where they are still building new homes and there are only a couple lots left (though we have been in our home almost two years now). Prices have gone up dramatically since we moved in two years ago but the prices to build a new home here have now pretty much stalled.

Where you can actually get the best deal is from all the new home owners that purchased a year or so ago in hopes of flipping the home or those who need to move fast. There are probably 50+ new homes for sale in our neighborhood (many the same models) and home owners are being forced to compete with each on their asking prices. There are not as many buyers in our neighborhood anymore but there are a whole lot of sellers. As one example, a home for sell across the street is for sale almost $35,000 less than what it would cost you to purchase a new one from the builder (not built yet).

If you are looking to buy a home in the current housing market, here are some negotiating tips:

• Make LowBall Offers! The new home buying market is no longer “over-heated” in most areas. Aim for around 15% or more off the asking price for home a home that seems overpriced.

• Wear Your Poker Face! Home sellers are aware that the market is shifting. Be Cool and Collecting and don’t let them think you are so excited about the home that they won’t need to lower their asking price.

• Have the Seller Sweeten the Deal! Always negotiate to see if they would be willing to pay for the closing costs. Are there special repairs you think they might be willing to make before the purchase? Ask them!

Many home sellers are still making a hefty profit but if you are looking to buy a new home you may begin to gain the upper hand. Take your time and make several offers on multiple homes. Remember: Negotiate, Negotiate, Negotiate!